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(2-7) Required Rate of Return Suppose rIF=5%,rM=10%, and rA=12%. a. Calculate Stock A's beta. b. If Stock A's beta were 2.0, then what would be

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(2-7) Required Rate of Return Suppose rIF=5%,rM=10%, and rA=12%. a. Calculate Stock A's beta. b. If Stock A's beta were 2.0, then what would be A's new required rate of return? (2-8) Required Rate of Return As an equity analyst you are concerned with what will happen to the required return

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